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Assume the following information Current spot rate of New Zealand dollar = $0.41 Forecasted spot rate of New Zealand dollar 1 year from now =
Assume the following information
| Current spot rate of New Zealand dollar | = | $0.41 |
| Forecasted spot rate of New Zealand dollar 1 year from now | = | $0.43 |
| One-year forward rate of the New Zealand dollar | = | $0.42 |
| Annual interest rate on New Zealand dollars | = | 0.075 |
| Annual interest rate on U.S. dollars | = | .09 |
Given the information in this question, the return from covered interest arbitrage by U.S. investors with $819,000 to invest is about ________.
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Health Care Finance Economics And Policy For Nurses
Authors: Betty Rambur
2nd Edition
0826152538, 978-0826152534
